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Commission Incentive Plan and Payout Schedule

[Company name] understands the value its professional sales staff brings to the organization. In addition to the base salary paid to sales professionals, individuals have the opportunity to earn additional compensation to be paid monthly and annually based on achieving sales increments for:

  • Enhancing business with the existing customer base.
  • Securing new business customers.
  • Increasing annual net income.

The following monthly commission plan will be available to all sales professionals who handle entire territories, excluding those in training status.

Enhancing Business with Existing Customers

Commissions for attainment of enhanced business with existing customers will equal 2% of the sale for business that exceeds the base (prior) year. Base year figures for each territory are available on [Company name]'s intranet.

Securing New Business

[Company name] is opening the year with an aggressive move to open new accounts. For new business development, commissions for new business secured will equal 3% of sales value for business secured during the first six months and will revert to 2% for the final six months of the year.

Annual Bonus

Supplementing the monthly commission structure, [Company name] also awards an annual bonus to sales staff based on net income derived from sales increases for the year. Sales professionals who have been with the company with territory assignments, who have completed at least nine months of the year and who are with the company as of the date of distribution are eligible for the bonus, which will be equal to .5% of net income on the value of the increased sales for the year.

Commission Sharing

In the event a sales professional is unable to complete an in-territory sale for any reason and another sales staff member (with prior approval) consummates the sale, the commission will be split between the sales representatives. The same commission-sharing arrangement will be observed when team sales are required or when sales staff are involved in cross-territory sales.

Payment of Commissions

Commissions are always paid in arrears to net out adjustments. Commissions due will be paid at the close of the month subsequent to the month in which the sale was completed: for example, if sale is completed in February, payout is no later than March 31 st.

For sales staff that may terminate during the year, commissions earned through the end of the month in which the termination occurred will be paid to the employee in the first pay period of the month subsequent to the month in which the termination occurred.

The annual bonus for the prior year is paid at the close of January. Sales staff must be employed at the time of the annual bonus payout to be eligible. Monthly estimates of the potential annual bonus award will be posted on the intranet. 


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